The 2020s are set to be the Asian decade, including Vietnam, with sustained growth rates of around 7%, according to Bloomberg.
Standard Charter predicts that Vietnam’s per-capital income will surge to US$10,400 in 2030 from roughly US$2,500 in 2018. (Illustrative image)
The service said that during the 2020s Asia will dominate an exclusive list of economies expected to sustain growth rates of around 7%.
India, Bangladesh, Vietnam, Myanmar and the Philippines should all meet the benchmark of 7% growth rate, while Ethiopia and Côte d’Ivoire are likely to attain the 7% growth pace, according to a report by Standard Charter.
The 7% growth rate means a doubling of gross domestic product (GDP) every 10 years.
Standard Charter predicts that Vietnam’s per-capital income will surge to US$10,400 in 2030 from roughly US$2,500 in 2018.
The South Asian members of the 7% growth group should be GDP standouts as they will together account for approximately one-fifth of the world’s population by 2030, Standard Chartered said.
Notably, China is absent from the latest ranking after being a member of the group for almost four decades, reflecting both a slowdown in economic growth and a progression toward higher per-capita incomes that makes faster growth rates more difficult to sustain.
Standard Chartered estimates that the world’s No. 2 economy will keep up a 5.5% economic growth pace in the 2020s.
The group of 7% growth economies tends to have savings and investment rates of at least 20-25% of GDP, the report said.
